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So you want to be in pictures?
The types, pros, cons and how-to of product placement
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Types of Product Placement
Paid placement It typically ensures the
most impactful placements.
It requires a direct connection to filmmakers.
It is precarious for novices as there is no standardized rate structure for product placement.
Scene from Safe Haven
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Types of Product Placement
Bartered placements Placement is exchanged
for promotional support and/or production assets.
Bartered placements are not always the strongest.
Movie promotional departments aren’t always able to secure or impact placement.
Scene from A Good Day to Die Hard
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Types of Product Placement
Unpaid placements They typically require
a direct relationship with filmmakers.
They are like playing the lottery. There are mostly small wins with an occasional big win. Scene from The Last Stand
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Pros of Product Placement in Film
Potential reach
In addition to viewership in theatres, more than two billion movies are rented in the US annually. Source: money.cnn.com
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Pros of Product Placement in Film
Potential world-wide audience
Source: MPAA
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Pros of Product Placement in Film
A Truly Captured audience In-theatre viewing captures attention in a way
that television cannot According to 2013 research from Deloitte, 81% of
Americans almost always or always engage in another activity while watching TV. The figure is 88% among 24-29-year-olds.
According to TNS Media Intelligence, 36% of an hour-long television program is commercials compared to 18% in 1981
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Pros of Product Placement in Film
Low CPMs that decrease over time Calculating initial ROI for paid placements
Additional distribution that lowers CPM includes movie rentals/downloads, hotel and airline viewing, premium channel distribution (i.e. HBO, Showtime, etc), cable channel distribution
Total DVD Ave # of Total Total # Cost Ave. ticket # of tickets and Blu Ray viewers # of DVD of movie Placement per 1000
Theatrical Box Offi ce* price** sold sales *** per DVD**** viewers viewers***** fee viewers$97,594,140 $7.89 12,369,346 1,172,762 10 11,727,620 24,096,966 $10,000 $0.4150
$293,503,354 $7.89 37,199,411 1,997,308 10 19,973,080 57,172,491 $25,000 $0.4373$1,065,219,746 $7.89 135,008,840 not yet on DVD 10 0 135,008,840 $200,000 $1.4814
* Source: boxoffi cemojo.com
** Source: Hol lywood reporter
***Source: the-numbers .com
****Source: Estimated DVD viewership per DVD according to deadl inehol lywood.com.
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Pros of Product Placement in Film
Increased brand cacheThe Worth of Product Placement in Successful Films: An Event Study Analysis. Journal of Marketing
Can disclosures lead consumers to resist covert persuasion? The important roles of disclosure timing and type of response . Journal of Consumer Psychology
Product Placement Can Be A Lot More Powerful Than We Realize. Psychology Today
Links to articles/article synopsis are available at www.castalongshadow.com
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Cons of Product Placement
It’s a relationship business (which can be beneficial)
Lead times are often 9 – 24 months
It’s an organic process with many decisions makers (it’s not for those with control issues)
ROI can be somewhat difficult to quantify
Filming for World War Z began in 2011. The film wasn’t released until the summer of 2013.
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Leveraging Placements with Promotion
Promotional overlays substantively increase recall of placements
Promotional partners can often negotiate perks such as set-visits, tickets to premiere, etc.
Promotions can be as powerful or more powerful than the placement itself.
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How to Activate with Promotion
Co-branded advertising
SEE NEXT SLIDE
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How to Activate with Promotion
Retail Activation
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How to Activate with Promotion
Publicity and PR
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How to Activate with Promotion
Social media
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How do I get started?
Speak with those you know that are doing it
Consider using an agency A reliable source for agencies is the
Entertainment Resource & Marketing Association . www.erma.org
Ask tough questions of candidate agencies Request documentation of performance Ask their strengths and weaknesses Ask specifically with whom they have the best
working relationships inside the industry
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For more information
Questions? Contact Mark McFann at [email protected]